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China, Pakistan ink pacts on AWACS, FTA

Nirupama Subramanian

No word on civilian nuclear co-operation

ISLAMABAD: Pakistan and China on Friday signed a Free Trade Area (FTA) agreement and a deal for collaboration in making Air-borne Warning and Control Systems (AWACS), but at the end of talks between visiting President Hu Jintao and President Pervez Musharraf, a much-speculated about announcement on civilian nuclear co-operation did not materialise.

In all, the two Governments signed 18 agreements that included a landmark five-year plan that Mr. Hu described as a "blueprint" for strengthening economic co-operation and trade.

The Free Trade Area agreement is expected to more than triple bilateral trade from the present $4.5 billion to $15 billion over the next 15 years, Pakistani officials said.

At a joint press conference, the two leaders paid tributes to their "all-weather friendship" that marked its 55th anniversary this year. Gen. Musharraf said the future of China-Pakistan relations was in strengthening "economic bonds".

"Trade, joint ventures and investment are the areas we need to focus fully so that our relationship remains long-term because this will bind us permanently and will be a strength for political and diplomatic association and cooperation which are at present excellent. But this bondage will be cemented through economic relations," Gen. Musharraf said.

Mr. Hu said China would continue to view its relations with Pakistan from a "strategic and long-term perspective.

"We are ready to work together with Pakistan to raise our strategic partnership to new levels," Mr. Hu said.

About civilian nuclear energy, Mr. Hu said China and Pakistan already had co-operation in this field and "in the future, we will continue to carry out such co-operation".

Despite recent efforts by both Governments to play down expectations of a civilian nuclear deal, there was speculation that the Chinese leader's visit would bring with it an announcement of assistance to construct six more nuclear reactors in Pakistan.

China built Chashma-1 and is assisting in the construction of Chashma 2, both nuclear reactors of 300 MW each. But no such announcement was made.

The Pakistan Air Force signed a memorandum of understanding with the Chinese aviation company CETC "for long-term collaboration and co-development in the fields of aircraft manufacturing and other related fields including AWACS", according to a statement from the PAF.

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